Credit Score
What Is a Credit Score?
A credit score is a three-digit number that represents your creditworthiness. It predicts how likely you are to repay borrowed money.
Credit scores typically range from 300 to 850.
Higher scores signal lower risk to lenders.
What Affects Your Credit Score?
Credit scoring models, including those developed by FICO, consider:
- Payment history
- Credit utilization
- Length of credit history
- Credit mix
- Credit inquiries
Payment history and utilization carry the most weight.
Why Credit Score Matters
Your credit score can affect:
- Loan approval
- Interest rates
- Insurance premiums
- Rental applications
- Employment screenings
Even small score improvements can lead to significant savings over time.
FAQs About Credit Score
What is a good credit score?
Many lenders consider 670+ to be good, though ranges vary.
How often does my credit score update?
It updates as new information is reported.
Can I check my score without hurting it?
Yes. That’s a soft inquiry.
Does income affect my credit score?
No. Income is not part of score calculations.
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